"Sustainable Materials Reshape Construction: Rising Demand, Regulatory Pressure, and ESG Goals Drive Surge in Green Building Solutions for Healthier, Low-Carbon Infrastructure"
BOSTON, Aug. 20, 2025 /PRNewswire/ -- According to the latest study from BCC Research, the "Green Building Materials: Global Markets" is expected to grow from $368.7 billion in 2025 to $708.9 billion by the end of 2030, at a compound annual growth rate (CAGR) of 14% during the forecast period of 2025 to 2030.
This report presents a detailed analysis of the global green building materials market, emphasizing environmentally responsible products that reduce impact across their lifecycle. It segments the market by application (insulation, siding, framing, finishes, and roofing), building type (residential, commercial, institutional, and infrastructure), and region (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The study draws on data from major green building councils and industry sources to highlight trends, market dynamics, and growth drivers, with estimates provided in U.S. dollars and forecasts based on industry feedback, regulatory developments, and capacity expansions.
This report is highly relevant today as global efforts intensify around sustainable construction. Governments and developers are increasingly adopting green certifications such as LEED, BREEAM, and Green Star, which emphasize the use of environmentally responsible building materials. The evolution of building codes is playing a key role by establishing formal sustainability standards and mandatory performance benchmarks that influence material choices across the industry. In the Asia-Pacific region, rapid urbanization and smart city initiatives are accelerating the demand for green materials. Additionally, many countries are embracing circular construction practices through policies that promote renovation and deconstruction instead of demolition, further driving the need for sustainable building solutions.
The factors driving the market's growth include:
Rising Demand for Sustainable Construction: As environmental awareness grows, there's increasing demand for buildings that minimize energy use, reduce carbon emissions, and promote healthier living. Consumers, businesses, and governments are prioritizing eco-friendly designs, driving the use of green materials in new construction and renovations.
Favorable Government Regulations and Policies: Governments worldwide are encouraging green building practices through incentives, subsidies, and mandatory standards. These policies support the adoption of sustainable materials by making them more financially viable and by often making them required for compliance in public and private projects.
Development of Building Codes: Building codes are being updated to include sustainability requirements, such as energy efficiency, use of non-toxic materials, and climate resilience. These codes push developers to use green materials to meet legal standards and improve building performance.
Circular Economy Efforts in Buildings and Construction: The construction industry is embracing circular economy principles by designing buildings for material reuse, recycling, and reduced waste. This shift promotes the use of durable, recyclable, and modular green materials that support long-term sustainability.
Potential for Extended Producer Responsibility (EPR): EPR policies may require manufacturers to take responsibility for the environmental impact of their products throughout their lifecycle. In construction, this could lead to more sustainable product designs and increased use of materials that are easier to recycle or repurpose.
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Report Synopsis
Report Metric |
Details |
Base year considered |
2024 |
Forecast period considered |
2025-2030 |
Base year market size |
$332.1 billion |
Market size forecast |
$708.9 billion |
Growth rate |
CAGR of 14% for the forecast period of 2025-2030 |
Segments covered |
Building Type, Application, and Region |
Regions covered |
North America, Europe, Asia-Pacific, South America, and the Middle East and Africa |
Countries covered |
U.S., Canada, Mexico, Germany, Sweden, U.K., France, Italy, Spain, China, Japan, India, South Korea, Brazil, and Argentina |
Market drivers |
• Rising demand for sustainable construction. • Favorable government regulations and policies for green buildings. • Development of building codes. • Circular economy efforts in buildings and construction. • Potential for extended producer responsibility in the construction sector. |
Interesting facts:
- Carbon-negative concrete is a promising alternative to clay bricks and autoclaved aerated concrete blocks. It is produced by combining processed agricultural wastes with mineral binder. Carbon-negative concrete has a carbon-negative profile as sequestration is built into its composition and production.
- Electrochemical cement production creates cement that has a distinct crystal structure by removing silicates and reactive calcium from raw materials. The approach reduces carbon emissions more than conventional methods since it does not need kilns that burn fossil fuels. By converting electrical energy into chemical energy, the technique ensures minimal waste.
Emerging startups:
- Terratico: This U.S.-based startup turns waste plastic into a building material, called terratico for concrete. It blends concrete's strength with plastic's lightweightedness and ensures that plastic trash is efficiently recycled, promoting environmental sustainability. Terratico comes in a range of surface treatments and hues. The company's sustainable approach helps urban planners and construction companies looking for environmentally sustainable yet aesthetic building solutions.
- Eco Material Technologies: U.S.-based Eco Material Technologies reengineers pozzolanic cement to improve its performance and reactivity. PozzoSlag concrete offers greater strength in less time and eliminates the need for non-sustainable cement additions. Its capacity to withstand sulfate and alkali-silica reactions improves the workability and flowability of concrete while decreasing the permeability of chloride. PozzoSlag also keeps the curing process from overheating and reduces carbon emissions compared to ordinary cement.
- Geobind Limited: This New Zealand-based startup produces Rockstead Geobind, a bioaggregate mineral binder that improves the performance of hempcrete. This solution speeds up setting times compared to conventional binders while improving the hempcrete's strength, flexibility, durability, and carbon sequestration properties. Additionally, it streamlines the manufacturing of prefabricated objects, encouraging a broader adoption of climate-positive construction techniques.
The report addresses the following questions:
- What are the projected size and growth rate of the market?
The global market for green building materials is projected to grow from $332.1 billion in 2024 to $708.9 billion in 2030 at a compound annual growth rate (CAGR) of 14% during the forecast period. - Which factors are driving the growth of the market?
The growth of the green building materials market is driven by rising demand for sustainable construction, favorable government regulations and policies for green buildings, and evolving building codes. - What are the challenges/restraints and opportunities of the market?
The challenges/restraints in the green building materials market include high initial costs and investment barriers, limited availability and supply chain gaps, compatibility issues, and lack of awareness.
The opportunities in the green building materials market include circular economy efforts in buildings and construction and the potential of extended producer responsibility in the construction sector. - Which market segments are covered in the report?
The global market for green building materials is segmented into:
Application: insulation, exterior siding, framing, interior finishes and roofing.
Building Type: residential, commercial, institutional and infrastructure.
Region: North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. - Which application segment will be dominant through 2030?
The insulation application accounts for the largest share of the green building materials landscape. Because insulation directly affects heating and cooling loads, it is a primary driver for reduced energy consumption and carbon footprint. Green insulation materials such as cellulose, sheep wool, mineral wool, cotton denim, aerogel panels, and spray foam made from bio-based polymers are gaining in popularity due to their low embodied energy, high R-values, recyclability, and non-toxicity. - Which region has the largest market share?
The North American region holds the largest market share driven by infrastructure maturity, strong adoption of building certification, government incentives, and net-zero goals in the U.S. and Canada.
Market leaders include:
- ALUMASC GROUP PLC.
- CEMEX S.A.B. DE C.V.
- CHINA NATIONAL BUILDING MATERIAL CO., LTD.
- EVEREST INDUSTRIES LTD.
- HEIDELBERG MATERIALS AG
- HOLCIM
- INTERFACE INC.
- JAMES HARDIE INDUSTRIES PLC.
- KINGSPAN GROUP
- KNAUF INSULATION
- OWENS CORNING
- SAINT-GOBAIN
- SIKA AG
- ULTRATECH CEMENT LTD.
- VULCAN MATERIALS CO.
Related reports:
Global Green Steel Market: This report explores the growing potential of the green steel industry, driven by sustainability and increasing global steel demand. It covers production methods like electric arc furnaces, hydrogen-based techniques, and carbon capture, and highlights applications in construction, transportation, and machinery. With a global and regional market analysis, the report evaluates green steel as an eco-friendly alternative to traditional steel, offering insights into market trends and opportunities.
Building-Integrated Photovoltaics (BIPV): Technologies and Global Markets: This report reviews the global BIPV (Building-Integrated Photovoltaics) market, focusing on technology, application, end users, and geography. It highlights market trends, challenges, and key players, while excluding utility-scale projects and pre-development designs. It also covers ESG developments, patents, and emerging technologies, offering insights into the competitive landscape and future market opportunities.
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